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Robert L. Davis, CPA
Financial Advisor
Crystal D. Davis, CFP®
Financial Advisor
Davis Financial Services, LLC
Park Place Professional Center
5871 Allentown Road
Camp Springs, MD 20746
Phone: 301-702-9300
Website: www.davisfinancialsvcs.com
May/June 2026
Start Your College Grad's Financial Wellness Path
You may be able to do this utilizing any unused funds in the student's 529 Plan. The IRS now allows rollovers of these funds to a Roth IRA in the child's name.
Requirements
You must have owned the 529 account for at least 15 years before rollovers are permitted. Contributions made in the five years prior to when distributions begin — including the related earnings — are not eligible for a tax-free rollover. Rollovers can't exceed the 2026 annual Roth contribution limit of $7,500 for beneficiaries under age 50 or $8,600 for those age 50 and older (which includes a $1,100 catch-up contribution).The lifetime 529 rollover limit is $35,000, so you'd have to do a rollover annually for several years. As the owner of the Roth IRA, your graduate must have earned income at least equal to the amount of the annual rollover.
Consult your trusted advisors about your unique situation.
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Davis Financial Services, LLC and LTM Marketing Solutions, LLC are unrelated companies. This newsletter was created by LTM Marketing Solutions, LLC and was not written or created by the named financial professional and does not necessarily represent the views and opinions of Avantax Wealth Management® or its subsidiaries.
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